JPMorgan warns of a possible drop in altcoin prices

Enthusiasm for altcoins may be waning, says JPMorgan

JPMorgan shared this wariness about altcoins in a note to investors, which was reported by Business Insider. According to the institution, the rush to non-fungible tokens (NFTs) and decentralized finance (DeFi) has carried some altcoins other than Ether (ETH). Cardano’s ADA hit an all-time high this week, for example, and Solana’s SOL broke into the top 10 most-capitalized cryptocurrencies, surpassing Dogecoin (DOGE).

But would this be short-lived? JPMorgan believes that the cryptocurrency market, and altcoins in particular, has become ” frothy “. Altcoins are said to be buoyed by bubbles, which has allowed them to gain momentum against Bitcoin. According to data from CoinMarketCap, altcoins now account for 56% of total cryptocurrency capitalization. They still only accounted for 51% at the end of July.

Follow cryptocurrency prices live

A trend that will reverse?

If we look at trading volume, the difference is even clearer: altcoins currently account for 33%, compared to 22% at the beginning of August. But according to JPMorgan, this will only be temporary:

The share ofaltcoinsseems quite high when compared tohistoricallevels, and we think it’s more likely to be bubbles and retail investor enthusiasm , Rather than a reflection of a structural uptrend.. »

In any case, it is certain that altcoins remain in the party for the time being. Smart contract platforms in particular are attracting interest from buyers. The inevitable Ether (ETH) has managed to cross the threshold of $ 3,700, and could sail to $ 5,000 in the coming days. Case to be followed thus…

Find all our analysis of cryptocurrency prices


Get a recap of crypto news every Sunday And that’s it.

What you need to know about affiliate links. This page features assets, products or services related to investing. Some of the links in this article are affiliate links. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to provide you with the best value for money.original and useful content. There are no implications for you and you can even get a bonus by using our links.

Investments in crypto-currencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, by any damage or loss caused as a result of the use of a good or service highlighted in this article. Crypto-asset related investments are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.

About the author: Marine Debelloir

JPMorgan warns of a possible drop in altcoin prices


Associate Editor on Cryptoast, I fell into the crypto-currency pot a few years ago. I’m passionate about the innovative technologies that come from blockchain and I love digging up the juiciest news to share with you.
All articles by Marine Debelloir.